Question

Peterson Foods manufactures pumpkin scones. For January 2013, it budgeted to purchase and use 16,000 kilograms of pumpkin at $1.11 per kilogram; budgeted output was 60,000 scones. Actual purchases and use for January 2013 was 17,000 kilograms at 0.99 per kilogram; actual output was 60,800 scones.
REQUIRED
1. Calculate the flexible-budget variance.
2. Calculate the price and efficiency variances
3. Comment on the results in requirements 1 and 2.